Enbridge buys underground natural gas storage facility from Fortis for $400 million

CALGARY – Enbridge Inc. has signed a deal to buy a large underground natural gas storage facility in B.C. for $400 million.

Under the agreement with FortisBC Holdings Inc., Enbridge will acquire the company’s interest in FortisBC Midstream Inc., which holds a 93.8 per cent interest in the Aitken Creek Gas Storage facility and a 100 per cent interest in the Aitken Creek North Gas Storage facility.

The underground reservoir is 120 kilometres northeast of Fort St. John, B.C., in the Montney production region.

Enbridge says it has 77-billion cubic feet of working gas capacity.

The company says Aitken Creek Storage connects to all three major long-haul natural gas transportation lines in Western Canada, including Enbridge’s Westcoast and Alliance pipelines.

The deal is expected to close later this year, subject to receipt of customary regulatory approvals and closing conditions.

This report by The Canadian Press was first published May 1, 2023.

Companies in this story: (TSX:ENB, TSX:FTS)